Land Prices in 5 Satellite Towns Drop

Land prices in five Nairobi satellite towns declined in the third quarter of 2026, with Mlolongo, Kiserian, Kiambu, Ongata Rongai and Tigoni recording price drops, the latest HassConsult Land Price Index reveals.

According to the 2026 Q3 report released on November 11, the declines came amid a broader slowdown in the property market, with land prices across Nairobi's 14 satellite towns recording an average quarterly growth of 0.65% in the three months to September 2026.

This was less than half the 1.4% growth recorded in the second quarter, signalling a moderation in demand and price appreciation across the satellite towns.

Mlolongo recorded the steepest decline in land prices, with the average price of an acre falling by 2.2% during the quarter to Ksh46.6 million.

This was followed by Kiserian, where land prices declined by 2% to an average of Ksh13.3 million per acre.

Kiambu recorded a 1% decline, bringing the average price of an acre to Ksh48.1 million.

In Ongata Rongai, land prices dropped by 0.9% to Ksh29.6 million per acre, while Tigoni recorded the smallest decline of 0.1%, with an acre averaging Ksh34.7 million.

According to the report, the trend points to a broader change in the investment attractiveness of land in satellite towns.

According to the property consultancy, land-price appreciation in 12 of the 14 satellite towns over the past two years was lower than the modelled cumulative returns from investing in rolling 91-day Treasury bills.

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Only Ruiru and Juja outperformed the Treasury bill benchmark.

HassConsult Creative Director Sakina Hassanali noted that the changing investment returns could influence how buyers approach land purchases.

“Satellite towns have historically attracted buyers investing in land for future capital appreciation. However, as returns from passive landholding become less competitive with alternative investments, the economic justification for purchasing land may increasingly depend on its intended use,” she explained.

“This could signal a gradual shift towards more use-driven investment in some of Nairobi's satellite towns, particularly as these markets mature.” 

Despite the five declines, nine satellite towns recorded positive price movements in the third quarter, with Ngong leading the growth.

Land prices in Ngong increased by 2.2%, bringing the average price of an acre to Ksh35.5 million. Thika followed with a 2% increase, pushing the average price to Ksh33 million per acre.

Ruaka recorded a 1.9% increase, with an acre averaging Ksh117.9 million, making it the most expensive satellite town.

Syokimau registered a 1.5% increase to Ksh40 million per acre, while Limuru recorded a 1.2% appreciation to Ksh27.5 million. Athi River recorded a 0.7% increase, bringing the average price of an acre to Ksh20.9 million.

Ruiru's land prices increased by 0.8% to Ksh42.5 million per acre, while Juja recorded a 0.3% appreciation to Ksh26.8 million. Kitengela registered the smallest positive movement, with land prices increasing by 0.1% to Ksh18.8 million per acre.

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Price Movements of Nairobi Suburbs in 2026 Q3

HassConsult noted that the average price of an acre increased by 0.7% to Ksh233.5 million, down from 1.4% growth in the second quarter.

Despite the moderation, 13 of the 18 suburbs tracked by HassConsult recorded positive price movements.

Karen led the market with a 3% quarterly increase, bringing the average price of an acre to Ksh81.8 million.

Westlands and Kitisuru followed, recording increases of 2.7% and 2.6%, respectively. An acre in Westlands averaged Ksh521.7 million, while Kitisuru recorded Ksh105.2 million.

Muthaiga registered a 2% increase to Ksh234.8 million per acre, while Loresho recorded a 1.9% appreciation to Ksh120.2 million.

Other suburbs that recorded increases included Kilimani, where land prices rose by 1.2% to Ksh451 million per acre.

Kileleshwa recorded a 0.9% increase to Ksh343.1 million, while Runda registered 0.8% growth to Ksh106.5 million per acre.

Lavington recorded a 0.4% increase to Ksh278.6 million, while Upperhill and Nyari each registered a 0.3% appreciation to Ksh570.6 million and Ksh128.6 million per acre, respectively.

Parklands and Langata recorded increases of 0.2%, with average prices of Ksh472.4 million and Ksh94.9 million per acre, respectively.

Meanwhile, five Nairobi suburbs recorded declines in land prices during the quarter, with Muthangari registering the steepest fall.

Land prices in Muthangari declined by 3.1%, bringing the average price of an acre to Ksh366.6 million.

Gigiri followed with a 2.2% decline, with an acre averaging Ksh255.4 million.

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Riverside recorded a 1.5% decrease to Ksh376.7 million per acre, while Spring Valley registered a 1.2% decline to Ksh310.7 million.

Ridgeways recorded the smallest drop of 0.6%, bringing the average price of an acre to Ksh92.4 million.

HassConsult attributed the broader slowdown to a return to more moderate market conditions following the stronger appreciation recorded in the previous quarter.

According to Hassanali, the sharp moderation suggests that the second-quarter rebound was a temporary acceleration rather than a sustained shift in land-price momentum.

“The sharp moderation in the third quarter suggests that the previous quarter's rebound was a temporary acceleration rather than a sustained shift in land-price momentum. Nairobi's land market appears to be returning to a period of more measured appreciation, following the stronger gains recorded earlier in the year,” Hassanali added.